Vol75-09 September 2025
Member newsletter for Southern Maryland Electric Cooperative
Legislative Energy Relief Refund to benefit SMECO members
Many residential SMECO members saw a credit on their bill in August, thanks to the Legislative Energy Relief Refund, a statewide effort to help offset high energy costs. This refund was created through Maryland House Bill 1035, enacted by Governor Wes Moore and the Maryland General Assembly in 2025.
The Maryland Public Service Commission (PSC) is working with utilities across the state, including SMECO, to distribute the credits in two phases: summer 2025 and winter 2026.
Summer and winter tend to be the most expensive times of year for energy use due to extreme temperatures. Distributing the credit in two seasonal installments helps reduce the impact of high bills when members need it most.
For phase one, eligible residential members automatically received a minimum credit of $40 on August bills if:
- They had an active residential electric account as of August 1, 2025, and
- Used electricity during the 12-month period ending March 31, 2025.
The total credit amount is based on the member’s average monthly electric use over the 12-month period ending March 31, 2025. Members are grouped into three tiers based on usage, ensuring a fair and proportional distribution. The summer 2025 refund tiers can be found at smeco.coop/relief. The winter 2026 refund tiers may differ somewhat, as may be determined by the PSC.
Check page two of the August SMECO bill for Legislative Energy Relief Refund to see the amount of your credit.
How is the refund being funded?
The refund is funded through Maryland’s Strategic Energy Investment Fund, which is
supported by alternative compliance fees paid by utilities that do not meet the state’s Renewable Portfolio Standard (RPS).
Under the RPS, utilities must supply 33% of their electricity from renewable sources in 2025, with goals rising to 50% by 2030 and 100% clean energy by 2040. Qualified energy sources include:
- Solar (with a 5.5% carve-out in 2025)
- Wind
- Small-scale hydroelectric
- Geothermal
- Certain types of biomass
- Methane from landfills or wastewater treatment
Utilities that fall short must pay fees into the Strategic Energy Investment Fund, which is now being used to deliver this $200 million statewide refund under the Next Generation Energy Act.
Want to use the credit to help your neighbor?
Members who wish to share their refund can make a one-time donation to SMECO’s Members Helping Members program by sending a check to:
SMECO
Members Helping Members
P.O. Box 1937
Hughesville, MD 20637
(Refund donations cannot be made automatically.)
Donations go to the Southern Maryland Tri-County Community Action Committee, which helps SMECO members in need who qualify for assistance.
Interested SMECO members can also sign up online at smeco.coop/mhm to add $1, $5, or $10 to their electric bill each month.
